Under what conditions must a party seeking injunctive relief for a Carvel dispute also submit the dispute for arbitration?

According to Carvel's 2025 Franchise Disclosure Document, despite the agreement to arbitrate disputes, either party has the right to seek temporary restraining orders and preliminary injunctive relief from a court of competent jurisdiction regarding any dispute that is subject to arbitration. However, the party seeking such injunctive relief must simultaneously submit the dispute for arbitration on the merits, as detailed in Section 19.1 of the agreement.

This means that a Carvel franchisee or Carvel itself can go to court to get immediate, short-term protection (like stopping someone from violating a trademark) while the larger dispute is being decided through arbitration. This allows for quick action to prevent ongoing harm while still adhering to the arbitration agreement for the final resolution of the matter.

This approach is fairly common in franchising, as it balances the need for swift action in certain situations with the desire to resolve disputes through arbitration, which is often faster and less expensive than traditional litigation. However, it's crucial for a prospective Carvel franchisee to understand that seeking injunctive relief requires them to also initiate arbitration proceedings concurrently.